Correlation Between Shanghai Ziyan and Nanjing Putian
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By analyzing existing cross correlation between Shanghai Ziyan Foods and Nanjing Putian Telecommunications, you can compare the effects of market volatilities on Shanghai Ziyan and Nanjing Putian and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Shanghai Ziyan with a short position of Nanjing Putian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Ziyan and Nanjing Putian.
Diversification Opportunities for Shanghai Ziyan and Nanjing Putian
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Shanghai and Nanjing is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Ziyan Foods and Nanjing Putian Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Putian Telec and Shanghai Ziyan is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Shanghai Ziyan Foods are associated (or correlated) with Nanjing Putian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Putian Telec has no effect on the direction of Shanghai Ziyan i.e., Shanghai Ziyan and Nanjing Putian go up and down completely randomly.
Pair Corralation between Shanghai Ziyan and Nanjing Putian
Assuming the 90 days trading horizon Shanghai Ziyan Foods is expected to generate 1.24 times more return on investment than Nanjing Putian. However, Shanghai Ziyan is 1.24 times more volatile than Nanjing Putian Telecommunications. It trades about -0.09 of its potential returns per unit of risk. Nanjing Putian Telecommunications is currently generating about -0.18 per unit of risk. If you would invest 1,914 in Shanghai Ziyan Foods on October 14, 2024 and sell it today you would lose (204.00) from holding Shanghai Ziyan Foods or give up 10.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Ziyan Foods vs. Nanjing Putian Telecommunicati
Performance |
| Timeline |
| Shanghai Ziyan Foods |
| Nanjing Putian Telec |
Shanghai Ziyan and Nanjing Putian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Ziyan and Nanjing Putian
The main advantage of trading using opposite Shanghai Ziyan and Nanjing Putian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Ziyan position performs unexpectedly, Nanjing Putian can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nanjing Putian will offset losses from the drop in Nanjing Putian's long position.| Shanghai Ziyan vs. Xiamen Bank Co | Shanghai Ziyan vs. Inspur Software Co | Shanghai Ziyan vs. China Everbright Bank | Shanghai Ziyan vs. Jiangsu Financial Leasing |
| Nanjing Putian vs. GRINM Semiconductor Materials | Nanjing Putian vs. HaiXin Foods Co | Nanjing Putian vs. Shanghai Ziyan Foods | Nanjing Putian vs. GigaDevice SemiconductorBeiji |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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